An imperative move to infuse venture capital into professional cycling is deemed necessary, as stated by Vaughters.
Plugge is endeavoring to persuade Tour de France organizers about the advantages of the new league-like initiative.
Recent reports have exposed a covert effort to revamp the business model of pro cycling, spearheaded by Richard Plugge, the CEO of Jumbo-Visma, and backed by the affluent Zdenek Bakala, a supporter of Soudal-QuickStep.
The objective is to attract substantial venture capital into the sport to mitigate its increasingly precarious financial situation.
The specifics of the plan remain somewhat unclear, but Plugge and Jonathan Vaughters, the CEO of EF Education-EasyPost, shared some insights on the ‘Radio Cycling’ podcast. The plan involves consolidating multiple teams and events into a more accessible format for new viewers, eliminating overlapping races that currently exist in the WorldTour.
The fundamental principles of this scheme bear a resemblance to the inception of the WorldTour in 2004, ensuring that top riders and teams participate in the same series of races throughout the year.
However, there is a notable difference – Plugge’s project aims to bundle races together into a package for sale to broadcasters, generating revenue that can be shared with teams.
This approach echoes previous attempts at a breakaway league championed by Bakala in 2011, but this time it seems more serious, with a consulting group seeking investor interest with a €600 million target to integrate Giro d’Italia organizers RCS Sport.
Nevertheless, the Tour de France organizers, ASO, remain a pivotal factor, as the UCI discovered during the ProTour era from 2004-2008 and teams realized in the attempted breakaway league of 2012.
Plugge disclosed that he has already engaged in discussions with Yann Moenner, ASO’s head of strategy, and intends to hold further talks with both ASO and the UCI in the near future.
Plugge emphasized the need for the sport to adapt to a changing world where competitors extend beyond other teams and organizers to encompass sports like football, rugby, NFL, and Formula 1. The goal is to ensure that the sport is “future ready” and experiences growth over the next five years, benefiting everyone involved.
Jonathan Vaughters, having successfully rescued his team from financial turmoil, expressed strong support for the proposal. He stressed that this initiative aims to stabilize the economics of the sport rather than making individuals rich, addressing the financial challenges faced by teams and smaller races dependent on sponsorship revenue.
This initiative differs from past breakaway league efforts and is not exactly a league, as it would operate under the World Tour umbrella. Vaughters underscored the significance of consolidating media rights into a package, benefiting teams, athletes, and smaller races, and generating revenue sources beyond sponsorship.
While change is likely to encounter resistance from teams concerned about their limited budgets and potential conflicts with ASO, Vaughters urged all parties to put aside personal differences and embrace this necessary step for the collective betterment of the sport.
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